Saudi Arabia's Public Investment Fund obtains a majority stake of 54% in MBC Group
The Public Investment Fund (PIF), the investment arm of Saudi Arabia, is reportedly set to invest close to $1 billion in sports streaming group DAZN. This investment follows a sharp increase in profits for MBC Group, the largest media company in the Middle East and North Africa, which reached SAR 335.43 million in the first half, an increase of 41%.
According to a filing with the Saudi stock exchange (Tadawul), the acquisition cost PIF SAR 7.469 billion ($1.99bn). SURJ Sports Investment, a part of PIF, has agreed to take a minority stake in DAZN.
MBC Group's brands include the MBC channels and the SHAHID video streaming platform. The potential investment in DAZN could result in more Saudi-backed sports events on the platform.
The chairman of PIF is Saudi Crown Prince Mohammed bin Salman. PIF has been linked to Sir Len Blavatnik's venture for over a year, and the investment in DAZN follows several months of speculation and denial.
PIF is looking to increase its involvement in the media and entertainment sectors. The investment in DAZN is part of their aim to develop a comprehensive media ecosystem.
Interestingly, the German institution Mediawan has also acquired a potential minority stake in connection with DAZN. This move suggests a broader international partnership for the sports streaming group.
The acquisition of MBC Group by PIF is significant, as the fund has taken a 54% stake in the prominent broadcaster in the Middle East and North Africa. This acquisition positions PIF as a major player in the region's media landscape.
Both Bloomberg and the New York Times have reported on the potential investment, adding credibility to the news. As the details of the investment unfold, it will be interesting to see how this partnership shapes the future of sports streaming and media in the Middle East and beyond.
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